Is Direct Auto Good for Car Insurance?
Last Updated on October 30, 2020
Direct Auto is a Nashville, Tennessee-based car insurance company catering mostly to high-risk drivers.
If you have multiple at-fault accidents or if you need SR-22 insurance, then Direct Auto may be one of your best options.
Find out everything you need to know about Direct Auto Insurance and how it compares to other providers today in our review.
About Direct Auto Insurance
Direct Auto Insurance is an insurance company that offers auto insurance, health insurance, life insurance, and other insurance products.
In the car insurance world, Direct Auto is best-known for catering to high-risk drivers, including drivers who need SR-22 certification. If you let your car insurance lapse, or if you have multiple at-fault accidents on your record, then you may need high-risk car insurance or an SR-22 certificate.
The Nashville-headquartered company is a subsidiary of Direct General Group. In recent years, the company has partnered with celebrities like former NFL quarterback Johnny Manziel, former figure skater Tonya Harding, and rapper Fat Joe to sell various insurance products across the United States.
It’s important to note that Direct Auto Insurance is completely different from another well-known high-risk car insurance company in the United States, The General. Direct Auto’s parent company, Direct General Group, shares a similar name, Direct Auto and The General are completely different entities.
Overall, Direct Auto Insurance is popular among high-risk drivers or anyone needing an SR-22 certificate. Many of these high-risk drivers are simply looking to get back on the road at a reasonable rate. They want cheap rates on basic liability insurance – not full coverage car insurance
Let’s take a closer look at Direct Auto Insurance’s products, services, and discounts to see what makes them different from other high-risk car insurance companies.
Direct Auto Insurance Products & Services
Direct Auto Insurance works differently from other car insurance providers. While other car insurance providers cater to drivers of all risk levels and insurance needs, Direct Auto Insurance mostly caters to high-risk drivers who need basic liability insurance.
Core products and services offered by Direct Auto Insurance include:
SR-22 Insurance: Direct Auto Insurance offers SR-22 certificates, also known as SR-22 insurance. If your car insurance has lapsed, or if you have caused multiple at-fault accidents in recent years, then you may require an SR-22 certificate to verify financial responsibility.
Bodily Injury Liability Coverage: Required in most states, bodily injury liability coverage covers lost wages, medical bills, and other expenses incurred by people you injure while driving. If you buy a basic liability insurance plan, then it comes with bodily injury liability coverage in most states.
Property Damage Liability Coverage: Property damage liability coverage covers damage you cause to other people’s vehicles and property while driving.
Full Coverage Car Insurance: Generally, people use Direct Auto Insurance for minimum liability insurance. However, drivers who want additional coverage can purchase full coverage car insurance (including comprehensive coverage and collision coverage) through Direct Auto Insurance. However, high-risk drivers with full coverage car insurance often pay exorbitantly high rates, which is why many drivers skip coverage.
Other Insurance Products: Direct Auto Insurance offers life insurance, health insurance, and other insurance products either directly or through its parent family. Direct’s life insurance is unique, with policies up to $25,000 available (coverage varies by state). You can buy a 6-month or 12-month term, no medical exam is required, and you can renew for up to 2 years at the same premium.
Direct Auto Insurance Discounts
Direct Auto Insurance offers a smaller range of discounts than ordinary insurance providers. The company caters mostly to high-risk drivers who pay the costliest car insurance premiums already and may not qualify for many discounts.
However, certain Direct Auto Insurance customers may qualify for discounts, including all of the following discounts:
Senior Citizen Discount: Drivers over 55 years of age who complete a driver training course could qualify for Direct Auto Insurance’s senior citizen discount.
Multi-Vehicle Discount: Direct Auto Insurance offers a multi-vehicle discount to drivers who insure multiple vehicles with the company.
Low Mileage Discount: The average American drives approximately 9,000 to 12,000 miles per year, depending on your state. If you drive significantly fewer miles than that average, then you could qualify for a low mileage discount. Rules vary by state, but you could qualify for this discount if you drive 6,000 miles or fewer per year.
Multi-Policy Bundling Discount: Direct Auto Insurance’s parent company sells a range of insurance products and services, including life and health insurance. If you bundle multiple policies together, then you receive a discount across all policies.
Continuous Coverage Discount: If you have maintained continuous insurance coverage with your previous insurer for at least 6 months and have not had a lapse longer than 90 days, then you could qualify for Direct Auto Insurance’s continuous coverage discount.
Returning Customer Discount: Direct Auto Insurance has a unique returning customer discount. If you have previously purchased a policy from the company, then you could qualify for a small discount (assuming you purchased the previous policy more than 6 months ago).
Direct Auto Insurance Reviews: What Do Customers Have to Say?
Direct Auto Insurance is not one of America’s largest or best-known insurance companies, so it doesn’t appear on nationwide or regional rankings like the J.D. Power list.
However, Direct Auto Insurance receives ratings from A.M. Best and other certification agencies to verify its financial strength, customer service, and other metrics.
There are several Better Business Bureau (BBB) pages for Direct Auto Insurance based on its different locations. However, this BBB page for the company’s Nashville headquarters has the most reviews. Direct Auto Insurance has an average rating of 3.07 out of 5 with 350+ reviews on that BBB page.
The company has 644 complaints closed in the last 3 years and 196 complaints closed in the last 12 months. All of these numbers are bad for an ordinary insurance company. However, they’re similar to the ratings seen with other high-risk car insurance companies. These companies specialize in providing high-risk auto insurance to high-risk drivers: they’re not known for good customer service or claims satisfaction.
Most Direct Auto Insurance pages have an ‘F’ rating overall, which is reflective of the number of complaints and bad reviews for the company.
Meanwhile, A.M. Best individually analyzes each Direct Auto Insurance subsidiary to verify its financial strength. A.M. Best awarded Direct Auto Insurance a financial strength rating of B (Fair) in most locations across the country back in 2007. This rating applies to both the auto insurance and life insurance divisions of the company. That’s a relatively poor financial strength rating, and it’s related to the fact that Direct specializes in insuring high-risk drivers.
However, A.M. Best praised the company for positive growth in operating earnings to offset this high risk. And, more recent A.M. Best ratings have upgraded the company’s financial strength to A- (Excellent), which is one score above the previous rating, suggesting the company has improved its financial strength in recent years.
Final Word – Direct Auto Insurance Review
Direct Auto Insurance is a high-risk car insurance company known for helping high-risk drivers legally drive – but not much else.
The company is not known for its strong claims satisfaction or customer service; instead, Direct Auto Insurance is best-known for SR-22 certification and minimum liability insurance for drivers with few other options.
|Direct Auto Insurance|
|Company Address||1281 Murfreesboro Pike
Nashville, TN 37217